Covid-19: RBI sees inflation falling below 4 pc target by mid-FY21
Apr 17, 2020, 11:12 IST
Mumbai, Apr 17 () RBI governor Shaktikanta Das on Friday said the inflation is on a declining trajectory and could fall below the central bank's 4 per cent target by the second half of this fiscal amid challenges posed by Covid-19 pandemic.
He said the consumer price index based retail inflation has fallen by 170 bps from its January 2020 peak.
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"In the period ahead, inflation could even recede further, barring of course any supply side disruptions and may even settle well below the target of 4 per cent by the second half of 2020-21," Reserve Bank Governor Das said in a early morning video conference.
Das added that such an outlook would make policy space available to address the intensification of risks to growth and financial stability brought about by Covid-19.
The retail inflation for March fell to a four-month low of 5.91 per cent on cheaper food articles. KPM ANSANS(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)